Tap House owner goes for more

Wall Street investment banker Gene Suh opened The Lyndale Tap House in Minneapolis’ Lyn Lake neighborhood in September 2009 because he needed to diversify as the stock market sank.

“I needed to do something else because it was clear the markets weren’t going to come back overnight, and a bar seems to be the opposite of the financial business,” said Suh, a St. Paul native and Carleton College alumnus.

The Tap House ended up being a great investment, and now Suh wants to take his neighborhood bar concept to other parts of the Twin Cities. He’s shopping for second-generation restaurant space in areas like Northeast and downtown Minneapolis, Roseville, Eden Prairie and Bloomington. He hopes to have a second location in the works by the middle of 2011, then gradually add more sites in the coming years.

“[The Tap House] has really resonated with the people in the neighborhood, and I think we can duplicate that success in other areas,” said Suh, who also owns Whisky Park in downtown Minneapolis.

And now’s the time because expansion is affordable.

“Landlords are looking for tenants who will pay their rent, and construction is cheap,” he said.

There are plenty of second-generation restaurant sites available that meet Suh’s criteria, said Andrea Christenson, senior vice president of retail for Cassidy Turley in Minneapolis, the broker who is representing him.

“We’re ready to go as soon as possible, but we’re not in a hurry,” she said. “We want to make sure the site is right.”

The Tap House has 24 tap beers, another 30 beers in cans or bottles and a full bar. But the key to its success, Suh says, is the food. The signature menu item is a Baltimore-style pit beef sandwich made from dry-rubbed Angus top round that is slow-cooked over a pit grill and sliced to order.

“It’s definitely a step above typical bar fare,” said Suh, who continues to split time between New York and Minneapolis. His managing partner, Phil Immerman, oversees day-to-day operations.

Value is another important factor, Suh said, pointing to average prices of between $9 and $12 for sandwiches, $12 and $15 for entrees and $6 and 10 for appetizers. The bar’s happy hour runs from 4 to 7 p.m., an hour later than many competitors.

Suh’s future bars won’t be carbon copies of The Tap House. While the core concept will remain similar, he plans to customize each location to the neighborhood. Each bar will have its own name based on its location.

“We don’t want to over-commercialize it. The last thing we want is to be like Chili’s or Applebee’s,” Suh said. “Each location will be catered to that neighborhood. You have to cater to the people who live by you.”

Stephanie Shimp, co-founder of St. Paul-based Blue Plate Restaurant Co., said that approach has worked well for her company. Blue Plate operates six neighborhood restaurants, including the Edina Grill in Edina. (The company plans a seventh site; read about it on page 4.) Menus and marketing are tailored for each location.

It’s important to get to know the community you want to do business in, Shimp said. Although that doesn’t necessarily require extensive market research. “It’s common sense and gut feel. I really don’t think it’s as scientific as one might think.”

Businesses also should be active in the community, joining local business associations and chambers, and getting involved with local schools and other organizations, Shimp said.

“You have to be part of the community. You can’t just plop yourself down in the middle of a community and not want to truly be part of that community.”

The Lyndale Tap HouseOwner: Gene SuhFounded: September 2009Business: Bar and restaurantLocation: 2937 S. Lyndale Ave., MinneapolisNews: Suh plans to expand the business with the addition of similar, neighborhood-style bars in other communities around the Twin Cities.Web: thelyndale.com